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VanEck

  •   14 December 2022
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Australia’s first Carbon Credits ETF added to platforms

Sydney, 14 December, 2022 – VanEck today announced that its Global Carbon Credits ETF (Synthetic) (ASX: XCO2) has been added to key platforms managed by HUB24, AMP and BT.

Since its launch on ASX on 13 October 2022, XCO2 has returned 16.39%1 (after fees) to 12 December 2022 and is continuing to attract strong interest from platforms, financial advisers and brokers.

Arian Neiron CEO and Managing Director VanEck, Asia Pacific, said: “XCO2 has generated a great deal of investor interest, well ahead of our expectations. We believe this growth will continue into 2023.”

XCO2 is an Australian first that offers instant access via the ASX to an investment in carbon markets which are viewed as a vital tool to help in the fight against climate change. XCO2 tracks the ICE Global Carbon Futures Index, which sources carbon credit futures prices from the four most actively traded and largest carbon markets and emission trading schemes (ETS) in the world. These are the European Union Emissions Trading Scheme, the Western Climate Initiative (California Cap and Trade Program), the Regional Greenhouse Gas Initiative (RGGI) and the UK Emissions Trading Scheme.

Since its launch XCO2 has been added to HUB24 Invest - CHOICE, AMP MyNorth Investments, BT Panorama Investments and ANZ Grow Wrap Investments, with a number of other platforms signalling XCO2 will be added imminently.

“In the time since we launched XCO2, we have been impressed by the desire to learn about this new asset class. In addition, as part of an overall review, we’ve decided to reduce XCO2’s management fee. The review also examined our operational performance and efficiency,” said Neiron.

“While XCO2’s new fee is in line with similar investments, it provides exposure to the largest and most liquid carbon markets in the world and is managed by a pioneering global firm with an established history in alternative asset classes and futures trading.”

“Carbon credits have historically been lowly correlated to mainstream asset classes and can be potentially used as a hedge against the impact of carbon emissions risks on investor portfolios. XCO2 allows investors to take advantage of the potential rise of carbon credit prices by giving investors access to the biggest global emissions trading schemes.”

“Any rise in carbon prices may also support responsible investing and incentivise pollution reduction schemes and policies as governments work harder to meet global climate agreements. Companies too are better aligning their production with environmental, social, and governance (ESG) investment goals, and many are using carbon credits to do this,” said Neiron.

1 Source: Morningstar Direct

 

  •   14 December 2022
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